Gilead Sciences Inc (GILD)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	480,000	5,665,000	4,592,000	6,225,000	89,000
Total assets	US$ in thousands	58,995,000	62,125,000	63,171,000	67,952,000	68,407,000
ROA		0.81%	9.12%	7.27%	9.16%	0.13%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $480,000K ÷ $58,995,000K
= 0.81%

Based on the data provided, the return on assets (ROA) for Gilead Sciences Inc has shown significant fluctuations over the last five years, ranging from 0.13% to 9.16%.

In 2020, the ROA was only 0.13%, indicating that the company generated a minimal return on its assets compared to its total assets. However, there was a substantial increase in 2021, with the ROA jumping to 9.16%, suggesting a significant improvement in asset utilization efficiency and profitability.

Despite the positive performance in 2021, the ROA dropped to 7.27% in 2022 and then slightly increased to 9.12% in 2023. These fluctuations might indicate changes in the company's operational efficiency, asset management, or profitability during these years.

In 2024, the ROA decreased to 0.81%, signifying a significant decline in the company's ability to generate profits from its assets compared to the previous year.

Overall, it is essential for Gilead Sciences Inc to monitor and analyze its ROA consistently to ensure efficient asset utilization, profitability, and sustainable growth in the future.